Questions from Cost Accounting

Q: 18-18 Healthy Dinners Co. produces frozen dinners

18-18 Healthy Dinners Co. produces frozen dinners for the health conscious consumer. During the quarter ended September 30, the company had the following cost data: Dinner ingredients…………………………..$3,...

Q: Fresh Products, Inc. incurred the following costs during December related

Fresh Products, Inc. incurred the following costs during December related to the production of its 162,500 frozen ice cream cone specialty items: Food product labor………………$175,000 Ice cream cone ingred...

Q: Rector Corporation is examining its quality control program. Which of the

Rector Corporation is examining its quality control program. Which of the following statements is/are correct? I. Rework costs should be regarded as a cost of quality when the rework is caused by inte...

Q: Six Sigma is a continuous quality improvement methodology that is designed to

Six Sigma is a continuous quality improvement methodology that is designed to promote: 1. Improvements for existing products and business processes. 2. Development of new products or business processe...

Q: The order size associated with the economic-order-quantity (

The order size associated with the economic-order-quantity (EOQ) model will necessarily decline if: a. Ordering costs rise b. Storage costs rise c. Insurance costs for materials in storage fall d. St...

Q: Jack’s Tracks sells 24,000 custom-designed GoKarts per year

Jack’s Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Jack a $50 processing cost per order, and Jack incurs a carryin...

Q: Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags

Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The ma...

Q: Donald Transport assembles prestige manufactured homes. Its job costing system has

Donald Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturin...

Q: Lyle Co. has only one product line. For that line

Lyle Co. has only one product line. For that line, the reorder point is 500 units, the lead time for production is three weeks, and the sales volume is estimated at 50 units per week. Lyle has establi...

Q: Just-in-time inventory assumes all of the following,

Just-in-time inventory assumes all of the following, except: 1. Zero defects. 2. Resources will only be introduced as they are needed. 3. Just-in-time inventory presumes first-in, first-out costing. 4...